McEwen Copper Completes US$240 Million Term Loan to Advance Los Azules Toward Final Investment Decision
Rhea-AI Summary
McEwen (NYSE/TSX: MUX) announced that 46.3%-owned McEwen Copper has closed a $240 million senior secured 4‑year term loan to advance the Los Azules copper project in San Juan, Argentina, and for general corporate purposes. The syndicate includes Sprott Natural Resource Investment Partners with $112 million, Rob McEwen with $85 million, and other lenders with $43 million. The loan bears 12% annual interest, payable monthly, with principal due at maturity and a 5% prepayment fee on remaining principal. Lenders also received 15,000 five‑year McEwen Copper warrants per $1 million of principal at a $40 exercise price. The funding bridges McEwen Copper toward a planned final investment decision and full project financing expected in mid‑2027, with targeted commercial copper cathode production in 2030, subject to financing and approvals. A recent field campaign completed 5,600 meters of drilling and advanced engineering, while community programs and local employment in San Juan expanded alongside progress toward selecting an EPCM contractor by Q4 2026.
Positive
- $240M senior secured term loan secured to fund Los Azules and corporate purposes
- Key lenders include Sprott with $112M and Rob McEwen with $85M
- Loan terms fixed at 12% interest annually over four years
- McEwen owns 46.3% of McEwen Copper; last implied value $456M (Oct 2024)
- McEwen holds a 1.25% NSR on Los Azules with projected undiscounted pre‑tax royalty cash flow of about $1.4B
- Feasibility Study completed using $4.35/lb copper price and Los Azules approved under Argentina’s RIGI
- Recent copper price noted as 50% higher than at the last McEwen Copper financing
Negative
- Term loan carries relatively high 12% annual interest cost
- Principal is a bullet repayment due at maturity after four years
- Early repayment requires an additional 5% fee on remaining principal
- Targeted commercial copper production at Los Azules only by 2030, subject to financing and approvals
- Project experienced one of the heaviest snow seasons in over two decades, requiring additional operational focus
News Explained
The closed financing adds subsidiary debt now; any disclosed ownership dilution is conditional on exercising warrants in McEwen Copper, not issuing McEwen common shares.
McEwen Copper has closed the
The warrants are for McEwen Copper common shares, so exercise—not the loan closing itself—would be the point at which the supplied dilution definition could apply to ownership in that subsidiary; McEwen's stated stake is
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 24 | Leadership change | Neutral | +2.2% | COO retirement and senior leadership promotions were followed by a 2.19% gain. |
| Aug 05 | Quarterly earnings | Negative | -7.4% | Mixed Q2 results included reduced Gold Bar guidance and higher cost guidance. |
| Aug 04 | Earnings conference | Neutral | +5.6% | The Q2 results conference-call scheduling notice preceded a 5.57% gain. |
| Jul 22 | Technical reports | Positive | +1.2% | Technical reports detailed expanded resources and a Grey Fox prefeasibility study. |
| Jun 29 | Index inclusion | Positive | -0.3% | Russell 2000 index inclusion was followed by a 0.33% decline. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
MUX's recent reactions diverged across announcement types, including a -7.36% response to Q2 earnings and a 2.19% response to leadership news.
Key Terms
senior secured financial
term loan facility financial
epcm contractor technical
nsr financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
All dollar amounts in this press release represent U.S. dollars.
TORONTO, Aug. 27, 2026 (GLOBE NEWSWIRE) -- McEwen Inc. (NYSE: MUX) (TSX: MUX) (“McEwen” or the “Company”) today announced that its
The proceeds of the Term Loan will be used to continue advancing engineering and early works of the Los Azules copper project in San Juan, Argentina, and for general corporate purposes. A final investment decision and full project financing is expected in mid-2027, with commercial copper cathode production targeted for 2030, subject to project financing and customary approvals. The Term Loan provides funding while McEwen Copper advances the broader project debt financing for Los Azules, for which Societe Generale was appointed sole financial advisor in May 2026. Preparations for a potential initial public offering of McEwen Copper continue in parallel.
The principal amount of the Term Loan will bear interest at
“This financing reflects our lenders’ confidence in Los Azules and in the progress Argentina has made over the past two and a half years. The initiatives of President Javier Milei have helped make Argentina an increasingly attractive destination for large-scale foreign investment. Economic stabilization, stronger credit ratings, lower country risk and the RIGI are bringing long-term capital back to the country. San Juan continues to demonstrate the qualities of a dependable mining jurisdiction, supported by strong institutions, rigorous processes and sound governance. We are proud to be building Los Azules here,” said Michael Meding, Managing Director of McEwen Copper.
LOS AZULES PROJECT UPDATE
Work at Los Azules continues to advance toward a final investment decision. The 2025-2026 field campaign was completed with more than 5,600 meters of drilling. Geotechnical results were better than expected and will improve the open pit design as mine planning advances. Condemnation drilling confirmed the suitability of the planned location for the North-East rock storage facility. Engineering for the final investment decision is ahead of plan. Engineering for the key process equipment packages (solvent extraction/electrowinning, sulfuric acid and crushing) has been awarded to Metso, the mining fleet tender is in final evaluation, and the selection of the EPCM contractor is expected by the fourth quarter of 2026.
At the peak of the past field season, the project employed more than 500 people, with nearly
This winter, the Project experienced one of the heaviest snow seasons in more than two decades. Returning to site and managing the meltwater will require additional focus, and McEwen Copper stands ready to support the response led by the Government of San Juan and local communities with heavy machinery and water management works. At the same time, the snowmelt is expected to refill hydroelectric reservoirs and recharge aquifers after years of drought, a welcome development for a region that has faced prolonged water scarcity. The Los Azules team has decades of experience working in the high Andes and managing snow events of this kind.
ABOUT MCEWEN
McEwen shares trade on both the NYSE and TSX under the ticker MUX.
McEwen provides its shareholders with exposure to a growing base of gold and silver production in addition to a very large copper development project, all in the Americas. The gold and silver mines are in prolific mineral-rich regions of the world: the Cortez Trend in Nevada, USA, the Timmins district of Ontario and Flin Flon in Manitoba, Canada, and the Deseado Massif in Santa Cruz province, Argentina. McEwen is also reactivating its El Gallo gold and silver mine in Mexico.
The Company has a
McEwen also owns a
McEwen also recently purchased
Chairman and Chief Owner Rob McEwen has invested over US
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed are as at the date of this news release and are McEwen Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the Company to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves, foreign exchange volatility, foreign exchange controls, foreign currency risk, and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.
The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by the management of McEwen.
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